Mortgage Rate Rises

Raymond Lin said:
I just checked Zoopla (take it with a grain of salt) that the house i bought in 2015 for £187k now estimated worth £295k on the low end to £325k on the high end.

That’s a like a 60% increase in 7 years, the market is in a bubble.
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We bought in 2010. 150K. Now valued about 300K. It is total madness.

Our area went up 18% in the last year alone.
 
Dem2k said:
The gain is house prices falling to within much more realistic value that people can afford. The hope is the interest rates will recover eventually and the housing market won't just shoot up in value when that happens they will recover in time but it'll take years. This is my hope anyway.
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They won't just reset in price. People won't move if they're having to sell at a loss in your scenario where rates have lowered back.

Point is people won't forget what they've paid for their house. Unless you're talking about new builds?
 
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Dem2k said:
The gain is house prices falling to within much more realistic value that people can afford. The hope is the interest rates will recover eventually and the housing market won't just shoot up in value when that happens they will recover in time but it'll take years. This is my hope anyway.
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This doesn't make much sense, if house prices are falling because of rising interest rates they're not necessarily any more affordable and likewise if interest rates drop then people can borrow more and so...

There is a big issue with the lack of supply, unless that is addressed then you're still going to have the same sort of competition for housing and if you can't afford to buy at current levels then you're probably not going to be able to buy after a fall either.
 
dowie said:
This doesn't make much sense, if house prices are falling because of rising interest rates they're not necessarily any more affordable and likewise if interest rates drop then people can borrow more and so...

There is a big issue with the lack of supply, unless that is addressed then you're still going to have the same sort of competition for housing and if you can't afford to buy at current levels then you're probably not going to be able to buy after a fall either.
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Yes the fall is linked to the cost of borrowing, so if the cost of borrowing returns to "normal" , prices will just go up again.
 
English translation?

sa banorë të mundshëm të aksioneve të shtëpive dolën sot në breg kundrejt sa shumë shtëpi u ngritën sot
 
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So I get that it is all doom and gloom if you're in a position to buy a house now and can comfortably afford the mortgage payments. But, despite them being substantially more than they would have been at the start of 2022, surely you can take some comfort knowing that rates aren't really going to get any worse and you probably won't ever be paying more for your mortgage repayments (on your current property).

So if you're buying a house now (like me), over time things should only really get easier in relation to repayments and whatnot.
 
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R.O.S.S.I said:
So I get that it is all doom and gloom if you're in a position to buy a house now and can comfortably afford the mortgage payments. But, despite them being substantially more than they would have been at the start of 2022, surely you can take some comfort knowing that rates aren't really going to get any worse and you probably won't ever be paying more for your mortgage repayments (on your current property).

So if you're buying a house now (like me), over time things should only really get easier in relation to repayments and whatnot.
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Unless interest payments shoot up!

I remember when they were around 15%.....
 
R.O.S.S.I said:
So I get that it is all doom and gloom if you're in a position to buy a house now and can comfortably afford the mortgage payments. But, despite them being substantially more than they would have been at the start of 2022, surely you can take some comfort knowing that rates aren't really going to get any worse and you probably won't ever be paying more for your mortgage repayments (on your current property).

So if you're buying a house now (like me), over time things should only really get easier in relation to repayments and whatnot.
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Well, if you're lucky enough to keep your job in the recession that'll help too.
 
R.O.S.S.I said:
So if you're buying a house now (like me), over time things should only really get easier in relation to repayments and whatnot.
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I think this is overly optimistic, 3% isn't the top of the curve.

Between 1990 and 2008 rates varied between 3.5% at the lowest and 11% at the highest, probably averaging 5-6%, this is base-rate not lending rate. I appreciate economic backdrop was very different 3 decades ago.

The last decade saw rates unusually low for an abnormally long period of time, which has normalised cheap debt and skewed affordability.
 
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